Economía 16-08-2017

OPEC increased production and maintains excess supply

Opec's joint output rallied again last month despite the official strategy of cutting pumping to reduce oversupply in a market that, according to data released by the organization, continues to receive more oil than it consumes.

The Organization of Petroleum Exporting Countries (Opec) in July produced 32.86 million barrels a day, 173,000 barrels a day or 0.5% more than the previous month, according to data from secondary sources mentioned in the report monthly report on the market situation in Vienna today.

According to information reported by the EFE news agency, the joint production of OPEC would thus have increased four months and is approaching 33 mbd last December, when this organization and several major producing countries agreed to withdraw from the market 1.8 mbd , an agreement that was renewed last May.

Libya and Nigeria, countries that fell out of the cut-off pact because of production problems, are OPEC partners in which pumping has grown most in addition to Saudi Arabia.

Iraq, Angola and Venezuela have seen their production fall in July.

According to Opec, the imbalance between supply and demand has been reduced throughout 2017 and the second quarter of the year reached 390,000 barrels of oversupply.

With all the volume of oil stored in the most developed countries, and most consumed, it remains very high and in July marked the 3.033 million barrels, 252 mb above the average of the last five years.

By 2018, OPEC expects world crude oil demand to rise by 1.32% to reach 97.77 mbd.

That increased consumption is expected to be accompanied by a similar increase in output among OPEC competitors, especially shale crude in the United States.